MD_DA540                                                         
DA                                                               
MD DA540 Dry Whey - West                                         

MADISON, WI.  February 09, 2017 (REPORT 6)                       

DRY WHEY - WEST                                                  

Western whey prices are mostly higher, but edged back slightly at the 
top of the range. A few sellers lowered their top prices a little to 
keep inventories in balance ahead of the spring flush. Whey industry 
contacts suggest the market tone is fairly strong and stable. Demand 
is mixed. Contacts say Asian buyers are just coming back to the market 
after the Chinese New Year, Mexican customers are cautious over 
concerns about currency and trade policies, and domestic shoppers are 
pulling good volumes of whey. A number of whey market participants 
look to the year over year decrease in whey production and a shift to 
whey protein isolate production as a cause of supply side tightness in 
the marketplace. The DMN monthly average of the mostly price series 
for West dry whey during January 2017 was $0.4606 compared to $0.4081 
one month ago and $0.2426 a year ago. NASS reports that December 2016 
U.S. human whey production, 78.1 million pounds, is down 13.3% from a 
year ago, but up 10.8% from November 2016. The Western region produced 
16.8 million pounds of edible dry whey during December, down 46.3% 
from last year, but up 18.1% from November. Month ending stocks for 
U.S. human whey, at 63.8 million pounds, are 1.9% lower than one year 
ago, but up 7.2% from November 2016.

NONHYGROSCOPIC:    .4400 - .5500   MOSTLY:    .4600 - .5300      

U.S. Dry Whey Exports. H.S. Code 0404104000(FAS)
                 2016 Exports      % Change From 
                 (Million Lb.)       1 Year Ago

December Total            41.7           + 48
 
TOTAL, JAN - DEC         422.8           + 7
 1 China                 152.1           + 50
 2 Canada                 41.9           - 1
 3 Mexico                 39.6           - 13
 4 Vietnam                30.9           + 74
 5 Philippines            27.9           - 10


1100CT Mike.Bandli@ams.usda.gov 608.422.8592
USDA/AMS/Dairy Market News, Madison, Wisconsin
Dairy Market News website: http://www.ams.usda.gov/market-news/dairy
Dairy Market News database portal: 
http://www.marketnews.usda.gov/mnp/da-home